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Financial Management

Board » Bihar Board » Class 12th » English Medium » Commerce » Business Study » L-9: Financial Management

Objective Questions (MCQs)

Question
Multiple Choice
VVI
Verified
ID- 4209

1. Why capital structure decision is important ?

  • (A) Effects cost of capital
  • (B) Effects market price of shares
  • (C) Both (A) and (B) above
  • (D) Neither (A) nor (B)
Multiple Choice
VVI
Verified
ID- 4210

2. Determinant of working capital is—

  • (A) size of enterprise
  • (B) period of manufacturing process
  • (C) availability of raw material
  • (D) all of these
Multiple Choice
Verified
ID- 4211

3. The determinants of bonus decision are—

  • (A) amount of profits
  • (B) liquidity of funds
  • (C) age of the company
  • (D) all of these
Multiple Choice
VVI
Verified
ID- 4212

4. Which of the following is a type of trading on equity ?

  • (A) Trading on think equity
  • (B) Trading on think equity
  • (C) (A) and (B) above
  • (D) Neither (A) nor (B) above
Multiple Choice
VVI
Verified
ID- 4213

5. Traditional approach of financial management was discarded during—

  • (A) 1910-20
  • (B) 1920-30
  • (C) 1930-40
  • (D) 1940-50
Multiple Choice
VVI
Verified
ID- 4214

6. For a joint stock company payment of dividend is—

  • (A) voluntary
  • (B) compulsory
  • (C) necessary
  • (D) none of these
Multiple Choice
VVI
Verified
ID- 4215
BSEB, 2019

7. The source of working capital is—

  • (A) Debtors
  • (B) Bank overdraft
  • (C) Cash sales
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4216

8. Financial management is—

  • (A) art
  • (B) science
  • (C) art and science both
  • (D) none of these
Multiple Choice
Verified
ID- 4217

9. .......... are assets of a relatively permanent nature used in the operation of the business and not intended for sale.'

  • (A) Fixed Assets
  • (B) Current Assets
  • (C) Intangible Assets
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4218

10. Main functions of financial management are—

  • (A) procurement of funds
  • (B) utilisation of funds
  • (C) allocation of net profits
  • (D) none of these
Multiple Choice
Verified
ID- 4219

11. The sum of the current assets is the ........... of a business'— J.S. Mill

  • (A) fixed capital
  • (B) working capital
  • (C) total capital
  • (D) net capital
Multiple Choice
Verified
ID- 4220

12. Source of fixed capital is not—

  • (A) Issue of debentures
  • (B) Issue of shares
  • (C) Creditors
  • (D) Loan from Bank
Multiple Choice
VVI
Verified
ID- 4221

13. Fixed capital is required for—

  • (A) for routine expenses
  • (B) for purchase of land
  • (C) for purchase of stock
  • (D) for payment to creditors
Multiple Choice
VVI
Verified
ID- 4222

14. Characterstics of sound financial planning —

  • (A) simplicity
  • (B) liquidity
  • (C) economy
  • (D) all of these
Multiple Choice
VVI
Verified
ID- 4223

15. The process of financial planning—

  • (A) Determination of Financial objectives
  • (B) Determination of Financial pouches
  • (C) Determination of Financial procedure
  • (D) All of these
Multiple Choice
VVI
Verified
ID- 4224

16. Capital gearing is of how may types—

  • (A) one
  • (B) two
  • (C) three
  • (D) four
Multiple Choice
VVI
Verified
ID- 4225
BSEB, 2018

17. Which of the following is a determinant of capital structure ?

  • (A) cash flow statement
  • (B) interest coverage ratio
  • (C) debt service coverage ratio
  • (D) all of the above
Multiple Choice
Verified
ID- 4226
BSEB, 2018

18. Modern approach of Financial Management is—

  • (A) procurement of funds
  • (B) utilisation of funds
  • (C) (A) and (B) both
  • (D) none of these
Multiple Choice
VVI
Verified
ID- 4227
BSEB, 2011, 16

19. Source of trade credit is—

  • (A) Long-term finance
  • (B) Medium-term Finance
  • (C) Short-term Finance
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4228
BSEB, 2015

20. Financial manager takes decision as to—

  • (A) finance
  • (B) investment
  • (C) dividend
  • (D) all of the above
Multiple Choice
VVI
Verified
ID- 4229
BSEB, 2015, 16

21. Fixed capital needed for ........... period.

  • (A) for short period
  • (B) for long period
  • (C) for both
  • (D) none of these
Multiple Choice
VVI
Verified
ID- 4230
BSEB, 2011, 15

22. Bank Overdraft facilities are available on—

  • (A) Saving Bank A/c
  • (B) Current A/c
  • (C) Term Deposit A/c
  • (D) All of these